ACCOUNTS RECEIVABLES

12 Months Ended

Dec. 31, 2021

NOTE 6. ACCOUNTS RECEIVABLES

During 2021, we amended our existing $250.0 million Receivables Financing Agreement which expanded the borrowing capacity to $300.0 million (Receivables Financing Agreement) and extended the maturity to September 24, 2024. The Receivables Financing Agreement includes a minimum borrowing requirement of 50% of the facility limit or available borrowing capacity, whichever is less. The administrative agent for our Receivables Financing Agreement is PNC Bank, National Association. Under the Receivables Financing Agreement, our eligible trade receivables are used for collateralized borrowings and continue to be serviced by us. In addition, the Receivables Financing Agreement incorporates the net leverage ratio covenant that is contained in the $1,615.0 million senior credit facility. As of December 31, 2021 and 2020, we had $300.0 million and $125.0 million, respectively, drawn under the agreement. As of December 31, 2021, $556.2 million of our trade receivables were pledged as collateral and we had no additional borrowing capacity under the Receivables Financing Agreement.

Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our domestic subsidiaries may sell their accounts receivable up to a maximum of $250.0 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €43.4 million. We will continue to service the outstanding accounts sold. These receivables qualify for sales treatment under ASC 860 “Transfers and Servicing” and, accordingly, the proceeds are included in net cash provided by operating activities in the consolidated statements of cash flows. The following table summarizes the AR Facilities activity:


	December 31,
	2021		2020
	($ in millions)
Beginning Balance	$	48.8	$	63.1
Gross receivables sold	673.4		854.3
Payments received from customers on sold accounts	(656.5)		(868.6)
Ending Balance	$	65.7	$	48.8

The factoring discount paid under the AR Facilities is recorded as interest expense on the consolidated statements of operations. The factoring discount for the years ended December 31, 2021, 2020 and 2019 was $1.1 million, $1.5 million and $2.9 million, respectively. The agreements are without recourse and therefore no recourse liability has been recorded as of December 31, 2021.

Our consolidated balance sheets included an allowance for doubtful accounts receivables of $12.3 million, $12.3 million and $11.9 million and other receivables of $65.3 million, $62.4 million and $87.4 million at December 31, 2021, 2020 and 2019, respectively, which were included in receivables, net.